FBR turns down PQA’s request for waiving of duties on tug import

ISLAMABAD: Federal Board of Revenue (FBR) has rejected the request of duty exemption on import of tugs.

The request was forwarded by Port Qasim Authority’s (PQA) for waiving off duties on import of tugs, which would be used to transport LNG.

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Sources said that the Port Qasim Authority is responsible to ‘facilitate’ Engro Elengy Terminal Pvt Limited (ETPL) as per an agreement, signed after the LNG import terminal was developed by the ETPL.

The Economic Coordination Committee (ECC) has already rejected the request of Ministry of Ports and Shipping for $60 million loan for the purchase tugs.

However, according to the Ministry of Ports and Shipping, clause 7.1 (b) of the LNG policy 2011 envisages fiscal incentives in the form of exemption from taxes and customs duties on import of equipment for the terminal.